American Motorcycle Dealer AMD 218 September 2017 | Page 16

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segment, including Indian Motorcycle
and Slingshot, was down low-single
digits percent during the 2017 second
quarter, while the overall motorcycle
industry retail sales, 900cc and above,
was down mid-single digits percent in
the 2017 second quarter. Indian
Motorcycles retail sales increased +17
percent and continued to gain market
share, driven by new model
introductions and continued strong
demand for the company's new, highly
customizable, split-screen ‘Ride
Command’ touchscreen infotainment
system available on certain models.
Slingshot retail sales were down
significantly due in part to tough
comparables versus the prior year
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands US $)
in thousands US $
Sales
Cost of sales
Gross profit THREE MONTHS ENDED JUNE 30
2017
2016
1,364,920
1,130,777
1,014,534
846,274
350,386
284,503 SIX MONTHS ENDED JUNE 30
2017
2016
2,518,702
2,113,773
1,925,825
1,581,692
592,877
532,081
Operating expenses:
Selling and marketing
Research and development
General and administrative
Total operating expenses
Operating income
Net income 118,531
60,753
91,063
270,347
99,182
62,041 232,844
112,758
166,577
512,179
120,271
59,130
period driven by increased shipments
in the second quarter of 2016 ahead
of their production move from Iowa to
Huntsville and the cadence of several
limited-edition models introduced in
Steve Menneto, President, Polaris Motorcycle Division: “We’re very confident
that our MY2018 range will sell well as we continue to grow our dealer
network at home and internationally”
77,820
45,579
64,566
187,965
117,002
71,166
the second quarter last year.
“Performance improved in many parts
of our business during the quarter,
particularly within our international
and PG&A businesses,” says Polaris
CEO Scott Wine. “The powersports
industry remained very competitive
and headwinds persist, but we were
encouraged by the return to growth in
our Side-by-Side business and
continued strength and aggressive
share gains for Indian Motorcycles.
“In a weak motorcycle industry, Indian
continues to demonstrate how a
complementary combination of
exciting new bikes, strong dealer
execution and overall brand
momentum can prevail. Dealer
engagement is a corporate priority and
from profitability to delivery and
communications, the consistent
progress we are making is augmenting
our retail results. We still have a lot of
work to do, but we are seeing results
from the strong and sustainable
improvements we are making to the
fundamentals of our business, as we
establish the foundation of a renewed
growth platform.”
The company will record costs,
anticipated to be in the range of $80.0
million to $90.0 million, associated
with supporting Victory dealers in
selling their remaining inventory, the
disposal of factory inventory, tooling,
and other physical assets, and the
cancellation of various supplier
arrangements.
International sales to customers
outside of North America, including
PG&A, totaled $191.2 million for the
155,061
88,688
134,146
377,895
194,146
118,055
Scott Wine, CEO: “We still have a lot
of work to do, but we are seeing
results from the strong and
sustainable improvements we are
making to the fundamentals of our
business”
second quarter of 2017, up twelve
percent, from the same period in
2016. All regions increased sales
double digits percent in the second
quarter with all segments showing
sales growth during the quarter.
The company has increased its sales
guidance and narrowed its earnings
per share expected range for the full
year 2017 from previously issued
guidance. The company now expects
adjusted net income to be in the range
of $4.35 to $4.50 per diluted share,
compared with adjusted net income of
$3.48 per diluted share for 2016. Full
year 2017 adjusted sales are
anticipated to increase in the range of
12 percent to 14 percent over 2016
sales of $4,516.6 million.
www.polarisindustries.com
The recently announced
addition of the Scout Bobber
ads a new, third model to the
popular Scout line-up; five
color schemes and a claimed
performance of 100 hp with
peak torque of 73 ft-lbs at
6000 rpm.
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AMERICAN MOTORCYCLE DEALER - SETPTEMBER 2017
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